Definition The Federal Reserve Bank, or the “Fed”, is the central banking system of the United States. It serves as the primary regulator of the US dollar, as well as the “lender of last resort” for other banks. Regulating Currency The Federal Reserve works to maintain the interest rates that banks use to lend money to Read More…
Definition The Reserve Requirement is how much of all deposits that a bank is required to keep “on hand”, meaning in its vaults, or on deposit at the Federal Reserve Bank (in the United States). Details The “Reserve Requirement” is about 10% of all money that has been deposited at a bank. Because of how Read More…
Definition: Money creation is accomplished through a system of borrowing and lending. Until the 1970’s, it was based on the total reserves of gold and silver. Details on Money Creation: Money is created principally by standards set by the federal reserve / central bank. The central bank will determine the amount loaned to it’s commercial Read More…
In the United States (and many other countries), the question “How is money created?” comes up a lot. The treasury isn’t just printing cash all day, if they were the government debt would be zero! In the US, money is created as a form of debt. Banks create loans for people and businesses, which in Read More…
Definition Cottage Industry, or the “Putting Out System” is a production system of producing goods that relies on producing goods, or parts of goods, by craftsmen at home, or small workshops, instead of large factories. History “Cottage Industry” describes the methodology that was used to produce most goods throughout human history, up until the end Read More…
Our December stock trading contest is now finished, we had tens of thousands of trades placed to fight for the top spots! See the winners below! If you want a shot at a cash prize yourself, join our next contest! Click Here To Join The Next Contest! Stock Trading Contest Results smithjjj5 – +36.28% Return mchung37 Read More…
Mobile HowTheMarketWorks is now live! You can now easily trade on the go with a completely mobile-optimized interface for trading, managing your portfolio, doing research, and everything else you could want on HowTheMarketWorks! Right now, if you log in with a tablet, we’ll still direct you to the full site, but if you’re using a Read More…
If you’ve started buying a few stocks, you will probably be interested in diversifying your portfolio between more than one sector. This sounds easy, but it can be very challenging finding stocks from a wide range of sources that fit what you’re looking for. Thankfully, our Quotes Tool has all the information you need to Read More…
Definition: “OHLC” stands for “Open, High, Low, Close”, and this is a chart designed to help illustrate the movement of a stock’s price over time (typically a trading day, hour, or minute) OHLC are very useful for provide quick visual details, especially for technical analysis. Details on OHLC Charts OHLC charts are also known as Read More…
Contest: Second November Investing Contest Final Rank: 2 Final Portfolio Value: $113,134.06 (+13.13%) Trading Strategy For This Contest I usually found stocks that had high volume and good community sentiment. As well as good stock short term news. I then bought into those stocks, and when they went up. I shorted them. MACD and Bolinger Read More…
Contest: Second November Investing Contest Final Rank: 5 Final Portfolio Value: $112,017.03 (+12.01%) Trading Strategy For This Contest I looked for low prices stocks breaking new highs and held on for a couple minutes or over night, then I sold them, sometimes shorting stocks that are too hyped up Performance Over The Total Contest Click Read More…
Contest: Second November Investing Contest Final Rank: 3 Final Portfolio Value: $112,739.67 (+12.73%) Trading Strategy For This Contest First off, thanks for the great game everyone! Well played. This being my first HTMW monetized contest, I feel very humbled and excited to win. During last week, I played the VIX and biotech stocks. TVIX and Read More…
Students can never have too much math! These lesson plans are applied lessons in math, from showing how to calculate simple interest to determining “Price Per Unit” when shopping. Click Here for Investing Lesson Plans Click Here for Savings Lesson Plans Click Here for Budgeting Lesson Plans Click Here for other Personal Finance Lesson Plans Read More…
Our November investing contests are now finished, we had tens of thousands of trades placed to fight for the top spots! See the winners below! If you want a shot at a cash prize yourself, join our next contest! Click Here To Join The Next Contest! First Weekly Contest blowke +15.56% Second Weekly Contest brendanriley +15.41% Read More…
Contest: October Third Daily Challenge Final Rank: 7 Final Portfolio Value: $101,621.37 (+1.62%) Trading Strategy For This Contest For the October 3rd Daily Contest I picked a mix between triple-leveraged ETFs and a few companies that I felt were undervalued. The triple-leveraged ETFs are great for a daily competition because the profits are huge if Read More…
Contest: October Third Daily Challenge Final Rank: 1 Final Portfolio Value: $108,724.97 (+8.72%) Trading Strategy For This Contest The strategy I prefer to use is to look for stocks that have been unfairly beaten down. Many stocks are down at any given time and most justifiably so. However, there are those that have become oversold. Read More…
Definition “Wall Street” is a street in New York City, near the southern end of Manhattan Island. It is the home of the New York Stock Exchange, and the biggest center of stock trading and finance in the world. History Before New York was New York, it was a Dutch colony called New Amsterdam, which Read More…
Keep Your Students Engaged With A Year Long Stock Game! If you’ve already used HowTheMarketWorks with your class, you know it can be one of the most fun and engaging part of the year for your students. However, just because your students have finished their unit on personal finance or investment doesn’t mean they can’t keep Read More…
Definition The New York Stock Exchange (or NYSE) is the largest stock exchange in the world. Think of it as an organized, fast-paced flea market where buyers and sellers from all over the world come to trade U.S. stocks (and now some foreign shares as well). It is where over 2,800 of the biggest U.S. Read More…
Contest: October First Daily Challenge Final Rank: 1 Final Portfolio Value: $104,671.33 (+4.67%) Day Trading Strategy For This Contest For this daily contest, I purchased 4 ETF stocks, then sold 2 of them once I had a good lead, not wanting to give up all of my gains. My strategy is to purchase the riskiest Read More…
